Exempt vs. Nonexempt

Employee classification is highly litigated and the distinction between exempt and nonexempt is critical. With the federal law increasing the salary threshold for exempt employees to $47,476 beginning December 1, 2016, employers must either give current salaried employees a raise or reclassify their position.

What is the difference between nonexempt and exempt employees? The main differences are how they are paid and job duties.